Complaints

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:07/12/2023

  Type:Billing Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  My wife and my joint checking account with ********************** was locked because she did not respond to an email from Betterment asking for personal information. The email, originally sent on June 14, 2023 looks like a phishing attempt, and therefore we ignored it.On July 10, 2023, we logged into our account on our laptop, and received a message that our "account is currently locked" and to email Betterment to resolve the issue. Upon emailing betterment immediately, we received an email on July 11, 2023, stating that we had to call Betterment. Upon calling Betterment, we were directed by the initial support person that they weren't sure why the account was locked. Then they asked someone else, and stated that the original email is, in fact, legitimate, and we needed to respond in order to unlock the account "in 1-2 days". We asked to speak to someone in the department that originated the email, and were told that department could not speak to us right away. We ask what "laws and regulations" Betterment needed this personal information to comply with, and did not receive a clear response.This is a clear marketing scheme to extract personal information from us in the form of a vague regulatory requirement. It has caused us to lost access to money we need to pay bills that are due. If the account remains locked, we will incur late fees on bills.The account needs to be unlocked immediately, and Betterment needs to clearly identify marketing emails.

  

  Business Response

  Date: 07/18/2023

  We have discussed and resolved the issue with the customer and consider the matter closed.
  
  

  Customer Answer

  Date: 07/19/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me and the matter has been resolved.
  
  Sincerely,
  
  *****************************
  
  
  
   
  
  

• Initial Complaint

  Date:05/03/2023

  Type:Service or Repair Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  My brother opened an account at ********************** for my mother a few years ago. Due to a family matter, he left the country and I was left to take care of my mother's affairs. I repeatedly tried to access her Betterment account as power of attorney before she passed away this past January 2023 but constantly ran into issues. 1. On or about October 2022, I began contacting the company to begin the process of requesting access to my mother's account as power of attorney for purposes of paying overdue bills, including her nursing home payment which at the time was past due. 2. The first thing I noticed was the length of time that passed between communications. After calling customer service several times, I got nowhere. I tried many times to escalate the matter to a supervisor, and just got passed around from rep to rep with no resolution. 3. I resorted to communicating with Betterment via email at their bequest but again, they were very slow to respond often times almost two weeks before a response was received. It didn't matter how emphatically I expressed urgency to process my request to process the paperwork for power of attorney. After many weeks and emails, Betterment made the decision not to process the request. 4. My mother passed away in January 2023 and I am now the court appointed administrator for the estate. I have provided the plethora of requested documents so I can closeout the account and finally put an end to the relationship. It has been almost a week and have gotten nowhere. They are holding almost $300,000 that does not belong to them. I understand that I (we) are one of many of Betterment's victims. This situation has been very traumatic as it involves my now deceased and beloved mother. In closing, if getting access to your funds when it matters most is important to you, do not do business with this company. I am hoping that by appealing to BBB, I will be able to finally access the account and transfer it to a more reputable institution.

  

  Business Response

  Date: 05/08/2023

  We have discussed and resolved the issue with the customer and consider the matter closed.
  
  

  Customer Answer

  Date: 05/10/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me and the matter has been resolved.
  
  Sincerely,
  
  ***************************
  
  
  
   
  
  

• Initial Complaint

  Date:04/18/2023

  Type:Product Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I made a withdrawal request on Apr 4, 2023. It is now April 17, 2023. I have made three separate phone calls and a number of emails with this company. The transfer request is not being honored, they refuse to pay interest while holding my money, and they refuse to transfer the money to a bank account that I use to regularly transfer money FROM to Betterment. I do not understand who is running this company and I have only spoken on the phone to work-from-home types and I can clearly hear children crying, people eating etc. They are not following up on my requests and I'm running out of patience. This is not the way to do business. There is simply no reason they should be holding on to thousands of dollars with no explanation, and frankly, no indication of care for the situation they have put me in.

  Customer Answer

  Date: 04/18/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me and the matter has been resolved.
  
  Sincerely,
  
  *************************
  
  
  
   
  
  

• Initial Complaint

  Date:04/17/2023

  Type:Billing Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I put my savings in the betterment savings account for easy access. The betterment account has become my lost savings at this point. The fintech betterment is holding my savings for a account verification I've already gave betterment. The statement provided from my financial institution is sufficient for your verification. I've done a three way call with the institution and your betterment agent. Your agent couldn't communicate properly. I've giving betterment two different statements provided by the institution. Betterment is refusing the statement from the institution. I've giving betterment enough for their verification. Where is the leadership at this fin tech? I've asked for the number to betterment's ethics department and a call from a supervisor? No follow up. The fintech betterment and it's people are dragging their feet on resolving this urgent issue.

  

  Business Response

  Date: 04/19/2023

  We have discussed options for resolving the issue with the customer and consider the matter closed.
  
  

  Customer Answer

  Date: 04/20/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me and the matter has been resolved.
  
  Sincerely,
  
  ***********************
  
  
  
   
  
  

• Initial Complaint

  Date:03/21/2023

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I recently signed up for Betterment's 401k services as an employer. I have reached out 5 times, twice by email directly to account managers, twice through a general contact form on the website, and once by phone to add the student loan repayment benefit program to my existing benefit package. Each time I have been told that someone will contact me to follow up, and it has not happened. The lack of responsiveness makes me concerned that I have chosen the wrong company to manage an integral part of my agency's benefits program.

  

  Business Response

  Date: 03/22/2023

  We have discussed options for resolving the issue with the customer and consider the matter closed.
  
  

• Initial Complaint

  Date:03/21/2023

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Betterment fraudulently withdrew $903.96 from our bank on 7/11/2022. This was discovered by ** during an internal audit. On 3/3/2023. We raised the issue with Betterment asking them for an explanation of this fraudulent transaction. It's been 3 weeks since we originally brought up the issue with them. After my initial 3 unanswered emails I finally got a response saying they were "looking into it" over a week ago after I threatened to report them. They've since ignored subsequent emails asking for a status update into the funds they've stolen from us. I'm filing a complaint with BBB today because of their unprofessional behavior and lack of common courtesy to even provide basic status updates of their supposed "investigation" when asked.

  

  Business Response

  Date: 03/22/2023

  We have discussed options for resolving the issue with the customer and consider the matter closed.
  
  

• Initial Complaint

  Date:03/20/2023

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I requested a refund of my employer sponsored and auto enrolled 401k. Per the Secure 2.0 guidelines "Of course, people can always opt-out (which is not common), and the SECURE Acts provision stipulates that people must be able to get a refund of any automatic contributions within 90 days." Betterment is refusing to refund my contributions. I am well within the 90days of the first contribution. Additionally, betterment engages in false or misleading emails regarding accounts.

  

  Business Response

  Date: 03/21/2023

  We have discussed options for resolving the issue with the customer and consider the matter closed.
  
  

  Customer Answer

  Date: 03/27/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

  They did not rectify the issue. By merely saying it is resolved does not mean it is. They are not holding true to the statements made on their website. I am not satisfied with the service received and want a refund on the fees charged. The company states that the statement does not apply to me? I am requesting that the BBB lower their ranking. 

   

   

   

   

  In order for the BBB to appropriately process your response, you MUST answer the question above.

  
  Sincerely,
  
  *********************
  
  
  
  
   
  

  

  Business Response

  Date: 02/21/2025

  Dear *** ****, 

  We are following up on your last correspondence on this matter. We understand it fell short of your expectations. While we addressed your comments directly and outside of the filing with the Better Business Bureau, we wanted to make sure we also responded more fully to this matter. 

  You inquired about receiving a refund for your former employer-sponsored and auto-enrolled 401(k), citing the SECURE 2.0 guidelines regarding the ability to receive a refund of automatic contributions within 90 days. However, we want to clarify that this provision does not apply to 401(k) or HSA accounts.

  Our team explained the available termination distribution options that would be accessible once your employer updated your employment status. However, we did not receive a response from your employer regarding these options and you continued to request a refund. While we regret any misunderstanding, we must adhere to the plans policies, the direction of your employer as the plan sponsor, and regulatory requirements.

  We regret that we were unable to come to a mutual resolution regarding this matter. Additionally, we want to clarify that Betterment is committed to providing accurate and transparent information. 

  If theres anything else we can assist with, please dont hesitate to reach out.

  Betterment LLC 
  

  
  

• Initial Complaint

  Date:03/16/2023

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I was recently searching for a web application by which to organize my finances, something similar to Mint, Quicken, YNAB, etc. I was steered to Betterment by an internet search. I opened an account and started inputting my personal financial accounts. Upon realizing this was a bank and not a management platform I requested that they delete my personal account information. This is not needed by them as I did not open any financial account with them. They refuse to do so.

  

  Business Response

  Date: 03/20/2023

  We have discussed options for resolving the issue with the customer and consider the matter closed.

  Customer Answer

  Date: 03/21/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

  [Your Answer Here]

   

   They did not resolve anything. They have told me they will not delete my personal banking information including account numbers and routing numbers. This is beyond unacceptable.

   

   

  In order for the BBB to appropriately process your response, you MUST answer the question above.

  
  Sincerely,
  
  *********************
  
  
  
  
   
  

  

  Business Response

  Date: 02/21/2025

  Dear *** ****, 

  We are following up on your last correspondence on this matter. We understand it fell short of your expectations. While we addressed your comments directly and outside of this filing with the Better Business Bureau, we wanted to make sure we also responded more fully to this matter. 

  To be clear, Betterment is not a bank. As an investment adviser and broker-dealer, Betterment LLC and Betterment Securities are required by federal law and regulations to collect and retain personal information about its customers, regardless of whether the account was funded. 

  While federal law restricts our ability to delete most customer information, please rest assured that Betterment does not sell customer data. We are deeply committed to maintaining the privacy and security of our customers information. You can find more details about how we collect, use, and protect personal information in our Privacy Policy, which outlines our commitment to not selling customer data to any third parties. 

  I understand this may not fully resolve your concerns and I sincerely regret any frustration this has caused. However, please know that your information will be handled with the utmost care and security. If theres anything else I can clarify or assist with, please dont hesitate to reach out.

  Betterment LLC 

• Initial Complaint

  Date:03/07/2023

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I lost access to my account weeks ago. Last Friday, I called in to Betterment and had four conversations over at least an hour. I was told I would shortly receive an email confirming my account was restored. I waited over four hours. The next day, I still did not receive the email. I sent numerous emails informing them I wanted immediate access and that I plan to close my account due to poor customer service. I also requested to hear from a manager. It is now late on Monday. I have not heard from anyone.

  

  Business Response

  Date: 03/08/2023

  We have discussed options for resolving the issue with the customer and consider the matter closed.

• Initial Complaint

  Date:02/23/2023

  Type:Service or Repair Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I accidentally pulled a large sum on money out of the wrong account, and ended up putting a stop payment on the transaction. I was locked out of my account since early January and unable to access my betterment account. Since then I've called and emailed multiple times with no resolution. I called in January to verify who I was and was told that it would take up to a week. It's been nearly a month now, and it's been escalated twice with no resolution. When I called the 2nd time I was told that it had already been escalated, but had been sitting with the supervisor for several weeks. That worker said he would escalate it again. The customer service reps I spoke to were really helpful and polite, but it wasn't anything they could do as it requires a supervisor to review. It's been a another week and I've gotten no response or access to my accounts.

  

  Business Response

  Date: 02/24/2023

   We have discussed options for resolving the issue with the customer and consider the matter closed.
  
  

  Customer Answer

  Date: 03/04/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me and the matter has been resolved.
  
  Sincerely,
  
  *********************